TLKM FY 2012 Std 20130318FH

(1)

PT Telekomunikasi Indonesia, Tbk.

(2)

Disclaimer

2

This document may contain forward-looking statement within the meaning of safe-harbor.

Actual results could differ materially from projections, estimations or expectations. These may involve risk and uncertainty, and may cause actual results and development to differ

substantially from those expressed or implied in the statements. The company does not

guarantee that any action, which may have been taken in reliance of this document will bring

specific results as expected.

(3)

Rp182.4 Trillion

Top 5

of IDX market cap

(6)

6

Telkom and Subsidiaries

(Satellite)

TSFL

29.71%

Government

of I ndonesia Public/ Listed

53.9% 46.1%

99.99% 65%

(Cellular) (Multimedia)

(Property & construction)

(7)

Business and Customer Portfolio

Telecommunication

POTS

FWA

Mobile / Cellular

International Services

Broadband

Network Services

Tower

Information

Premise Integration Services

VA, Managed App & Performance/ITO

E-Payment

ITeS (BPO, KPO)

Media & Edutainment

Media : Pay TV & FTA

Content / Portal

Retail

Wholesale

International

Personal

Consumer/Home

SME

Enterprise

OLO ( Other Local Operators )

(8)

Telkom’s Customers

8

Fixed Wireline 8.9 mn

Fixed Wireless 17.9 mn

Cellular 125.1 mn

Mobile Broadband

16.8 mn Fixed

Broadband 2.3 mn

Market Share

Source: internal data

(9)

Indonesia

(10)

Market Outlook

2013 Economy and Market Outlook

2015 26% 25% 23% 20% 7% 2010 28% 26% 23% 18% 6% 1990 36% 30% 18% 13% 4% -1.3% -0.7% 1% 1.6% 2.4% CAGR 1990-2015 0-14 15-29 30-44 45-64 65+

Source: BPS, World Bank, IMF, Internal Analysis

5.50 6.35 6.01 4.63 6.20 6.46 6.00 6.50 6.30 6.50

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Strong Indonesia GDP Growth (%)

More than 45% of Indonesia

population in 15 - 44 age group

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Fixed Broadband Penetration:

Indonesia is Lagging About 5 Years

11

•

Fixed broadband penetration over household <5%

•

Mobile broadband penetration over population <9 %

•

Total broadband penetration over population <11%

Source: ITU, internat data.

(12)

Indonesian Telecommunication Industry

12

2012 Dec Subscriber Market Share

Prabayar Pasca Bayar

Penetration (SIM Card)

•Total Cell Subs >300 mn

•Total Big 3 Subs: 230 mn

58.5M 19%

(13)

Overview of

(14)

Roadmap to 2015

IDN 2015 (Indonesia Digital Network 2015)

14

High Speed Broadband Access through Optical Fiber Network & Wifi

IP-based and Optical Backbone Network

Integrated Next Generation Network for Multi Services & Multi Screen

I DN

Id-Ring

Indonesia Digital Network

Id-Con

• High Speed Optical Access Network

• 15 million Homepass

• 1 million WiFi

• IP and Optical Backbone Network

• 30 Node Tera Router

• 30K km Fiber Optic

• Convergence Service Platform

• Multi Services

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Indonesia Digital Network 2015

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Id-Ring: Telkom National Backbone

Nusantara Super Highway

16

Existing

Planning

FP: Fiber Port Rep: Repeater

UnRep: Without repeater

DMCS: Dumai Malaka Cable System

(17)

Overview of

(18)

Business Challenges

High SIM Penetration, Low Data Adoption

Source: BPS, Internal Telkomsel Analysis 0 30 60 90 120 150

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

SIM Penetration Rate (%)

Stage I (Emerging) Stage II (Rapid Growth) Stage III (Maturity) 100% 122% 130% 149%

High SIM penetration, increased churn

behaviour and declining wallet share

Mobile Data adoption still

low, albeit rising

As at Dec 2012, the number of Telkomsel data users increased 37.0% YoY to 54.6 million, i.e. 43.6% of Telkomsel’s customer base are data users.

6 13

21 40 55 -20 40 60

FY08 FY09 FY10 FY11 FY12

Telkomsel Data Users

(million)

(19)

Core Services

Strengthen Position in Strategic Segments

Customer Acquisition

Yield Optimisation



Build up large customer base to

gain economies-of scale



Focus on value and margins over

quantity

Postpaid

Prepaid

(20)

Mobile Data

Accelerate Growth in Mobile Data

D

evice

N

etwork

A

pplications



Partnership with

strategic device

principals &

distributors



Invest ahead in

high quality data

network



Majority of new

BTS will be for 3G



Acquired 3

rd

5MHz

3G Frequency



Leverage on top

and emerging

applications

(21)

Customer Experience

Enhance User Experience across all Services

Continue Leadership in Network Quality and Coverage

Network

Billing

Improved Offers through new Billing Solutions and Simplicity

 More Channels to Access Services

 Additional Notifications and Checks to improve Transparency & Trust

Usage

Service

Personalized Service for Premium Segments

(22)

Digital Services

New Growth Engine – Digital Services

Advertising

Payment

Digital Lifestyle



Establish a leading

mobile advertising

business



Create a proximity

and remote payments

business



Enter digital lifestyle

business



Synergy with parents

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24

Through Mitratel, our wholly-owned subsidiary, we leverage our tower asset…

By December 2012:

• Operated 4,264 towers

• Served 12,251 tenants

• Tenancy Ratio: 1.14x

2013 Target:

• 6,000 towers

• Tenancy Ratio: 1.3x

• IPO

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Highlights

26

Strong financial results

Tsel Revenuegrew by 11.9% YoY to Rp54.5tn

Consol Revenue grew 8.3% YoY to Rp77.1tn

Telkom unconsol revenue positive 0.2% after at least 6 years experiencing

negative growth

Subscribers strong

Growth

Broadband users grew more than double to 19.1mn, 82.8% YoY increase.

Cellular subscribers grew 16.9% YoY to 125.1mn.

Telkomsel’s strong network added.

Total BTS54,297 units, a 27.4% YoY growth

3G BTS 15,433 units, a 62.3% YoY growth.

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27

Business Results

(28)

Data Services

Users (Mn)

Revenues (Rp Tn)

28

2.3

FY11 FY12

1.8

39.9

54.6

Fixed Bband

Mobile Data

▲

37%

FY11 FY12

▲

50%

Mobile Data Speedy

5.2

7.7

4.0

4.2

▲

5.6%

(29)

Cellular Subsidiary

BTS (‘000)

Revenue (Rp Tn)

Net Adds

▲

18.1

FY11 FY12 FY11 FY12

3G

2G

FY11 3Q12 FY12 4Q12

42.6

54.3

9.5

33.1

15.4

38.9

125.1

107.0

48.7

54.5

14.4

14.7

▲

1.7%

▲

11.9%

Subscribers (Mn)

29

(30)

Revenues

(Rp Tn) 30 71.3 77.1 FY11 FY12 ▲

8.3%

28.6 23.9 11.6

3.5 1.3

2.3 30.7

27.6

10.7

4.3 1.2 2.6

Cellular voice Data, Internet, & IT

Fixed line voice Interconnection Network Other 10.7 13.1 0.1 14.9 12.6 0.1 2011 2012

Data Comm, Internet, IT SMS

VoIP & e-Business

Note: “Other” among others consists of CPE, Pay TV, Leased Revenue, Directory Assistance, USO and Modem Sales.

40%

34%

36%

16% _14%

5% 6% 2% 2%

3% 3%

FY11 FY12

(31)

Revenues

(Rp Tn)

31

20.2

20.3

3Q12 4Q12

▲0

.7%

Note: “Other” among others consists of CPE, Pay TV, Leased Revenue, Directory Assistance, USO and Modem Sales

7.9

7.3

2.5

1.2 0.3 0.8 8.1

7.5

2.5

1.2 0.3 0.6

Cellular voice Data, Internet, & IT Fixed line voice Interconnection Network Other

3Q12 4Q12

(32)

Expenses

(Rp Tn) 32 ▲

4.4%

49.3 51.4 FY11 FY12 16.4 14.9 8.6

3.6 _3.3

2.9 (0.3) 16.8 14.5 9.8 4.7

3.1 3.0

(0.4) O&M D&A Personnel Interconnection Marketing G&A Other

Note: “Other” consist of (gain)/loss on forex – net, Other Income & Expense – net.

(33)

Expenses

(Rp Tn)

33

▲5

.7%

13.1

13.9

3Q12 4Q12

4.6

3.6

2.1

1.2

0.7 0.8

(0.0) 4.0 _3.9

3.5

1.3

0.9 _0.8

(0.4) O&M D&A Personnel Interconnection Marketing G&A Other

3Q12 4Q12

(34)

Capital Expenditure

(Rp Tn)

34

11.7

3.2

2.4

FY12, Total CAPEX Rp17.3 Tn.

Other Subsidiaries

(35)

Tower Lease

35

Accounting treatment change on Tower Lease, from Operating Lease to Finance Lease starting FY12 reporting. There was no restatement for 2011 figures since the amount is considered as not material.

Based on the auditor assessment, Telkom met criteria to apply the finance lease accounting treatment for some of its tower lease.

This change directly impacted :

• Assets

• Liabilities

• P&L

(36)

(37)

2013 Company Outlook

Continue to Deliver Value to Shareholders



In line with or better than the market for

both TLKM Consolidated and Tsel

Revenue Growth



Stable or slight decline for both TLKM

Consolidated and Tsel

EBITDA Margin



Group (Consolidated): 20% over Revenue



Allocation:



Tsel: 60%



TLKM (Unconsol) & Others: 40%

Capex

(38)

38

Contact Address : Investor Relations

Grha Citra Caraka 5th _floor

Jl. Jend. Gatot Subroto Kav. 52 Jakarta, 12710

Indonesia

Tel : +62-21-5215109 Fax : +62-21-5220500

Email : investor@telkom.co.id Website : www.telkom.co.id

TLKM FY 2012 Std 20130318FH

PT Telekomunikasi Indonesia, Tbk.

Contents

Rp182.4 Trillion

of IDX market cap

Telkom and Subsidiaries

Government

Business and Customer Portfolio

Retail

Personal

OLO ( Other Local Operators )

Telkom’s Customers

Fixed Wireline 8.9 mn

Indonesia

Fixed broadband penetration over household <5%

Overview of

Indonesia Digital Network

Id-Con

DMCS: Dumai Malaka Cable System

Overview of

SIM Penetration Rate (%)

High SIM penetration, increased churn

Customer Acquisition

distributors

Network

Advertising

2013 Target:

Strong financial results

Subscribers strong

Telkomsel’s strong network added.

Business Results

Mobile Data Speedy

Cellular Subsidiary

Cellular voice Data, Internet, & IT

Revenues

Cellular voice Data, Internet, & IT Fixed line voice Interconnection Network Other

Expenses

(0.4) O&M D&A Personnel Interconnection Marketing G&A Other

Expenses

(0.4) O&M D&A Personnel Interconnection Marketing G&A Other

Capital Expenditure

FY12, Total CAPEX Rp17.3 Tn.

Tower Lease

Accounting treatment change on Tower Lease, from Operating Lease to Finance Lease starting FY12 reporting. There was no restatement for 2011 figures since the amount is considered as not material.

2013 Company Outlook

Allocation: